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| Pete's Perspective: Asparagus Industry Still Feeling Effects of Poor Government Policy
Michigan asparagus growers continue to be economically injured as a result of the Andean Trade Preferences Act (ATPA) and the newly enacted Peru Trade Promotion Agreement (PTPA).
Originally intended to provide Peruvian coca leaf and opium drug growers with an alternative crop in the hope of stemming the flow of illegal drugs into this country, ATPA has failed to stem the flow of cocaine and opium into the United States and is single-handedly responsible for Michigan asparagus growers having to sell their asparagus at below the cost of production.
In the absence of a fair trade policy, a new industry was created in Peru.
After ATPA was enacted, imports of processed asparagus products surged from 5.5 million pounds in 1994 to more than 54 million pounds last year. The most recent U.S. International Trade Commission analysis on the effects of the ATPA acknowledged the import surge and admitted that the largest potential displacement effect was for asparagus.
I continue to work with the Michigan Asparagus Committee to assist the industry as it diligently works to establish new markets and create new products to stem the loss of market share. For instance, I attempted to amend the PTPA when it was considered by Congress to prevent duty-free imports during domestic harvest season, worked with my colleagues to pass the Asparagus Market Loss Program within the Farm Bill and continue to assist the industry with purchases by the USDA for the nation’s nutritional programs. These purchases have helped to stabilize prices by removing excess supply and have proven to be a popular commodity in the nutritional programs.
The struggles asparagus growers have experienced because of agreements with Peru reflects the need for Congress to carefully consider all trade agreements. We must not become protectionist in the new free market economy, but institute mirror trade agreements that allow access to each of our markets with a common sense approach.
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